Baird 2016 Global Industrial Conference Tom Loewald Senior Vice President and Chief Commercial Officer November 8, 2016 The world leader in serving science
Safe Harbor / Non-GAAP Measures Various remarks that we may make in the following presentation about the company’s future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in our Form 10-Q for the quarter ended July 2, 2016, under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investors” section of our website under the heading “SEC Filings.” Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the need to develop new products and adapt to significant technological change; implementation of strategies for improving internal growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of exchange rate fluctuations on international operations; the effect of healthcare reform legislation; use and protection of intellectual property; the effect of changes in governmental regulations; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if estimates change, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today. During this presentation, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP, including adjusted EPS and adjusted operating margin. The non-GAAP financial measures of Thermo Fisher’s results of operations and cash flows included in this presentation are not meant to be considered superior to or a substitute for Thermo Fisher’s results of operations prepared in accordance with GAAP. Definitions of these non-GAAP financial measures and, for historical periods, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available under the heading “GAAP/Non-GAAP Reconciliation & Financial Package” in the “Investors” section of our website, www.thermofisher.com. 2
We Are The World Leader in Serving Science Global Scale Unmatched Depth • >50,000 employees in 50 countries • Leading innovative technologies • $18 billion in annual revenue • Deep applications expertise • Unparalleled commercial reach • Premier laboratory productivity partner Our Mission: To enable our customers to make the world healthier, cleaner and safer 3
Diverse Customers, Product Mix & Geographic Reach Balanced and diverse Strong recurring Growing presence customer base revenue mix in emerging markets ROW ROW 4% Services Services Asia- Asia- Pharma Pharma Diagnostics Diagnostics 14% Pacific Pacific & Biotech & Biotech & Healthcare & Healthcare 19% 25% 31% North America North America Instruments Instruments Equipment & Equipment & 53% Consumables Consumables Software Software Europe Europe Industrial Industrial Academic & Academic & 24% 62% & Applied & Applied Government Government 24% 19% 25% End Markets Products Geographies 4 Note: Percentage estimates based on unaudited LTM combined revenues of Thermo Fisher Scientific through Q3 2016
Four Complementary Reporting Segments Industry-leading technologies to solve a broad range of complex analytical challenges Extensive portfolio to accelerate life sciences research, discovery and diagnosis • Chromatography and Mass Spectrometry Analytical Analytical • Chemical Analysis Instruments Instruments Instruments • Environmental and Process Instruments Life Sciences Life Sciences 18% 18% • Biosciences Solutions Solutions 26% 26% • Genetic Sciences • Bioproduction Total Total revenues revenues • Clinical Assays Specialty Specialty ~$18B ~$18B • Immunodiagnostics Diagnostics Diagnostics • Microbiology 18% 18% • Anatomical Pathology • Transplant Diagnostics Laboratory Products Laboratory Products • Research and Safety Market Channels • Healthcare Market Channel and Services and Services • Laboratory Products 38% 38% • BioPharma Services Leading positions in attractive niche diagnostics segments Industry-leading offering to increase laboratory productivity Percentages based on unaudited LTM revenues through Q3 2016 including estimates for intercompany eliminations 5 and other accounting policy adjustments.
Complementary Segments Fundamental to Our Growth Strategy Analytical Analytical • High-impact innovation Instruments Instruments • Life science tools into the clinic Life Sciences Life Sciences Solutions Solutions • Laboratory technologies for applied markets • R&D centers of excellence (COE) and ability to leverage cross-business Customer technologies and programs Specialty Specialty Diagnostics Diagnostics • Unique customer value proposition • Scale in emerging markets Laboratory Products Laboratory Products • Customer reach and experience and Services and Services • Manufacturing COEs in low-cost regions 6
Innovation - Largest R&D Spend in Our Industry Delivers High-impact Products Analytical Instruments Life Sciences Solutions • Mass spectrometry • Genetic analysis Laboratory Products • Chromatography • Bioproduction • Portable analytical instruments • Cell analysis 6% 6% • Molecular biology Specialty Specialty Diagnostics Diagnostics Life Life 18% 18% Sciences Sciences Solutions Solutions >$700M 46% 46% R&D Spend Specialty Diagnostics Laboratory Products • Transplant diagnostics • Cold-temperature storage Analytical Analytical • Allergy and • Centrifugation Instruments Instruments autoimmunity • Liquid handling 30% 30% • Drugs of abuse • Biomarkers 7 R&D Spend and percentages based on LTM through Q3 2016.
Building Industry Leadership Over the Decade Vanquish Sorvall LYNX Raman portable Ion Torrent S5 UHPLC centrifuge spectrometers Exactive Orbitrap Fusion Tribrid Bioproduction ImmunoCap Orbitrap single-use technologies Innovation Innovation Attune Nxt Cryo-EM Dubai Customer Suzhou Established Opened Experience Center factory environmental India clinical Singapore packaging facility instruments HQ India Chromatography Mfg. Center Lithuania in Shanghai Center of Excellence of Excellence Biosciences Global footprint Global footprint China Innovation Center of Excellence Center established South America HQ in Brazil B.R.A.H.M.S B.R.A.H.M.S 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 A clear and proven strategy, consistently executed 8
Commercial Capabilities are Unmatched in Our Industry Accelerate research Solve complex Enable analytical technical innovation challenges Partner Improve on R&D diagnostics projects Customer Customer • Unique customer value proposition Increase Improve • Ultimate channel partner lab production productivity efficiency • Comprehensive services offering Utilize • Leading e-Business presence Optimize strategic supply chain outsourcing Support • Extensive corporate accounts program regulatory compliance 9
The Ultimate Channel Partner with Unrivaled Customer Access Broadest Broadest Choice and market offering market offering Convenience >800,000 >800,000 products products • Broadest product portfolio • Leading e-Commerce transaction platform Global • Customer / supplier self-service Presence • Superior product availability and Differentiated • Integrated supply chains and service levels Services warehouses • Web platform • Purchasing / supplier • Pan-European operating model aggregation services • Company leverage in emerging • Customized inventory markets management solutions • Diversity solutions 10
Industry-leading Presence in Emerging Markets E. Europe, Middle China South Korea Emerging East, Africa >$1.5B Revenue Markets >$250M Revenue >$550M Revenue 19% $18B Revenue Developed Markets 81% S.E. Asia Latin America >$350M Revenue (excl. Brazil) >$250M Revenue India Brazil >$200M Revenue >$100M Revenue | | Total employees: >12,000 LCR* manufacturing revenue: $1.4B Demonstration labs: 26 NOTE: Revenue based on LTM through Q3 2016 11 * LCR: Low-cost region.
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